Huarong Shareholders Approve New President, Unit Exits
Huarong Shareholders Approve New President, Unit Exits
(Bloomberg) -- China Huarong Asset Management Co. said shareholders approved the appointment of its new president Liang Qiang as well as proposals to exit some non-core units as the embattled bad-debt manager seeks to shore up its finances.
Shareholders also passed resolutions including a remuneration settlement plan for directors and supervisors for 2019, fixed assets budget for 2021, and the change in use of remaining proceeds from its 2015 initial public offering, Huarong said in an exchange filing, after holding its first EGM at its Beijing headquarters.
The statement didn’t give any update on its past-due 2020 financial results or restructuring plan for the company. Shares of Huarong will remain halted.
Huarong’s fate has been the subject of intense speculation over its financial health ever since it missed a deadline to report results at the end of March, sending its bonds to record lows. Doubts about the Chinese government’s support for Huarong have prompted a broader rethink of the decades-long assumption that Beijing will always stand behind the debt of state-controlled borrowers.
Huarong has already postponed its annual general meeting due to the earnings delay. Under the terms and conditions of the notes, Huarong and its offshore unit China Huarong International Holdings have until the end of this month to release their figures in order to avoid a technical default, according to S&P Global Ratings.
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